Foreclosure Deed in Lieu Attorney San Jose
Avoiding Wrongful Foreclosure with San Jose Attorney
A popular alternative to a home foreclosure or a short sale is a deed in lieu of foreclosure. A deed in lieu occurs when the debtor gives the property back to the lender when the homeowner can't afford the mortgage and is unable to catch up on their payments. Once the lender receives the deed to the property, they then sell the property to recover part or all of the loan balance that was owed. The homeowner may be required to move out of the property, but their debt will be forgiven and they will be able to start over from scratch. This is different than as short sale in that the property is sold by the lender instead of being sold by the debtor at a fair market value.
Capital Law Offices has extensive experience in foreclosure defense as well as short sale and general bankruptcy matters. We can discern whether a deed in lieu of foreclosure is right for you. Homeowners will typically not qualify for a short sale if they have a second mortgage on their home and this is one of the main reasons why homeowners choose deed in lieu to resolve their foreclosure. If you are suffering from extreme financial stress and are unable to make your monthly payments, consult with a bankruptcy attorney at Capital Law Offices to learn what option may be best for you.
The Benefits of Deed in Lieu
Even if the foreclosure process has started and a short sale was attempted but failed, a deed in lieu of foreclosure can still be possible. One significant benefit of a deed in lieu is that it allows the homeowner to avoid a foreclosure and avoid the negative impact it would have on their credit report. The homeowner is also allowed to remain in their home for a short period of time after the deed in lieu agreement has been reached; this is extremely helpful in trying to relocate.
Unfortunately, banks in California have the legal right to pursue borrowers for the balance of the loan after a deed in lieu of foreclosure, a short sale, or foreclosure. To help with the growing number of foreclosure notices throughout the nation, CitiMortgage has recently agreed to give qualified borrowers an additional six months in their homes before it takes them over if they fail to qualify for the other foreclosure-avoidance programs Citi provides. However, in order to qualify, a borrower must be at least 90 days late on their mortgages and cannot have a second lien. Speak with a foreclosure defense attorney from Capital Law Offices to learn more and make an informed decision.
If you have any questions or would like to schedule a FREE initial consultation with one of our experienced attorneys, please Contact Us online or call at (408)627-4898 today!